What is the difference between 24 and 26 paychecks?

24 paychecks means an employee is paid twice each month — semi-monthly. On the other side, 26 paychecks signifies an employee is paid every two weeks — biweekly.

How do the pay dates line up across the year?

• Semi-monthly pay is linked with the set calendar dates. For instance, the 15th and the last day of the month — although pay dates might change in the case of landing on weekends / holidays.
• Biweekly pay obtains a weekday pattern — for example, every other Friday. That’s why a biweekly schedule generally creates 2 months per year with 3 paydays in a 26-paycheck year.

What changes in the calculation?

The annual salary stays the same. However, each check is treated in a distinct way as outlined below:

Does it change taxes or take-home pay?

Even if the year-end tax bill is according to total annual income, it might change the “timing” of what comes out of each check. Small swings happen as withholding leverages paycheck-based calculations and specific deductions hit on certain pay cycles.

Items that generally shift can be listed as below:

• Federal withholding — based on your W-4
• Social Security & Medicare
• Benefit premiums & retirement contributions
• Washington programs like WA Cares Fund, Washington PFML, and Washington L&I — when applicable

Which schedule feels easier for budgeting?

Semi-monthly lines up in an optimal way with rent & other monthly bills. Biweekly presents occasional “third checks,” which many people put toward debt & big expenses or savings.

Would you like your pay setup checked?

If the pay schedule & deductions, or withholdings, look off, contact us today at Helium Day Tax & CPAs. Our experts will review the paystub, explain what you’re seeing, and present assistance in keeping payroll & tax payments on track.